Data room security is an important aspect to consider when sharing sensitive information in a due diligence process or other business transactions. A virtual data room is a safer alternative to sending sensitive documents via email. Email isn’t always secure enough.
There are many ways to increase the security of your servers and other equipment within data centers. They include biometric security scanners as well as a chain link 12′ fence that is topped with razor wire, and a permanent guard at the gate in front. However, these types of security measures cost a lot and may not be suitable for smaller businesses.
Administrators should carefully examine the access level of each user and permissions prior to inviting them into a data space to avoid costly errors and ensure security. Make sure that the right permissions are assigned to each user and group. Consider enabling electronic watermarking in order to prevent users from modifying or copying sensitive files outside the VDR.
It’s also a good idea to have audit logs, SSO integration and two-factor authentication. These features lower the chance of human error and allow administrators to monitor activities to find possible leaks and abuse of the VDR.
It is also essential to make sure that the data you keep in your data room is protected by encryption in its resting state and during transit. This is essential for M&A due-diligence, as sensitive data could fall read here into the wrong hands through a leak.